The Components of Investment Bank
Sales
Sales are another core component of any investment bank. The primary job of the sales force of an Investment bank is to call on high net worth individuals and institutions to suggest trading ideas (on a caveat emptor basis) and take orders. Salespeople take the form of:
1) The Classic Retail Broker,
2) The Institutional Salesperson, or
3) The Private Client Service Representative.
Brokers develop relationships with individual investors and sell stocks and stock advice to them.
Institutional salespeople develop business relationships with large institutional investors. Institutional investors are those who manage large groups of assets, for example pension funds or mutual funds.
Private Client Service (PCS) representatives lie somewhere between retail brokers and institutional salespeople, providing brokerage and money management services for extremely wealthy individuals.
Salespeople make money through commissions on trades made through their firms.
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